THE RUPEE: dollar gains ground

The rupee weakness was extended its in the open market on Wednesday as it lost 10 paisa for buying at Rs 61.18 and shedding seven paisa for selling at Rs 61.25, dealers said. Higher demand for dollar forced the rupee to recent slide and it may continue till the end of the out-going fiscal year 2006-07 as importers were busy in the payments of bills, currency analysts said.
The rupee also fell against the euro, losing 10 paisa for buying and selling at Rs 81.85 and Rs 81.95, they said. In the Asian market, yen hovered near an all-time low against the euro and a 4-1/2-year low versus the dollar on Wednesday as investors felt confident putting on carry trades to take advantage of the low-yielding Japanese currency.
Signs of a robust global economy, buoyant stock markets and renewed calm after a sell-off in major bond markets have prompted investors to borrow funds in currencies such as yen to fund purchases of higher-yielding currencies such as the Australian and New Zealand dollars.
INTERBANK RATES: The rupee, however, inched up with slight gains, picking up one paisa for buying at Rs 60.59 and gaining two paisa for selling at Rs 60.60, they said.

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Kerb Buying             Rs 61.18

Kerb Selling            Rs 61.25

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INTERBANK CLOSING RATES: Interbank closing rates for dollar on Wednesday.

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Buying                Rs 60.59

Selling               Rs 60.60

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Repo Rates (Yield p a)

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Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

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Overnight   9.40       9.45        9.40        9.45          9.43

1-Week      9.10       9.30        9.25        9.40          9.26

2-Weeks     9.00       9.20        9.10        9.25          9.14

1-Month     8.90       9.10        9.00        9.15          9.04

2-Months    8.80       8.95        8.85        9.05          8.91

3-Months    8.80       9.00        8.85        9.05          8.93

4-Months    8.85       9.00        8.90        9.10          8.96

5-Months    8.85       9.00        8.95        9.10          8.98

6-Months    8.85       9.10        9.00        9.15          9.03

9-Months    8.90       9.10        9.05        9.20          9.06

1-Year      8.90       9.15        9.10        9.25          9.10

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Call Rates (Yield p a)

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Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

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Overnight    9.40       9.75       9.45        9.80          9.60

1-Week       9.25       9.50       9.35        9.60          9.43

2-Weeks      9.25       9.50       9.40        9.75          9.48

1-Month      9.25       9.60       9.50        9.75          9.53

2-Months     9.25       9.60       9.40        9.75          9.50

3-Months     9.25       9.60       9.40        9.75          9.50

4-Months     9.40       9.75       9.65        9.90          9.68

5-Months     9.50       9.75       9.75       10.00          9.75

6-Months     9.75      10.00      10.00       10.25         10.00

9-Months    10.00      10.25      10.25       10.50         10.25

1-Year      10.00      10.50      10.25       10.75         10.38

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RUPEE IN LAHORE: The rupee-dollar parity remained unchanged amid sluggish trading trend in the local currency markets on Wednesday.
According to the currency dealers, there was no change in demand for the dollar and its supply condition which helped rupee maintain its position. The dollar resumed trading at overnight closing level of Rs 61.05 and Rs 61.15 as its buying and selling rates, respectively. The opening rates continued to prevail during entire Wednesday's trading and finally closed at the same level, the dealers said.
However, the rupee could not get out of pressure and lost value against the pound sterling. The pound was purchased at Rs 121.40 and sold at Rs 121.70 as compared to previous closing of Rs 120.90 and Rs 121.20, respectively, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee-dollar parity remained unchanged at the open currency markets of Islamabad and Rawalpindi on Wednesday.
The dollar opened at Rs 60.90 (buying) and Rs 61.00 (selling) against the last rate. It failed to observe any change in the evening session and closed at Rs 60.90 (buying) and Rs 61 (selling).
Pound Sterling opened at Rs 120.00 (buying) and Rs 120.20 (selling) against the previous rate. It did not witness any change in the second spell and closed at Rs 120.00 (buying) and Rs 120.20 (selling).
Copyright Business Recorder, 2007